Beyond Meat shares surge higher on planned 'McPlant Burger'
McDonald’s announced plans to test plant food group Beyond Meat’s burgers in eight US restaurants. This follows the success of a plant-based offering in the United Kingdom and Europe. The testing is due to take place as early as next month and is a big boost for Beyond Meat.
The company’s share price has been languishing in previous months after a disappointing earnings report showed a second-quarter loss of 31 cents per share. This was mainly due to a lack of orders from restaurants that were still closed during the lockdown from the delta variant.
Beyond Meat’s share price jumped higher on the news announcement and will likely end the week positive. The news also follows on from recently announced marketing deals with YUM! Brands (owners of KFC, Pizza Hut and Taco Bell), as well as PepsiCo and Walmart.
Source: Admirals MetaTrader 5, #BYND, Weekly - Data range: from 12 May 2019 to 14 Oct 2021, performed on 14 Oct 2021 at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year results not available.
Since the Beyond Meat IPO in May 2019, the stock price has traded mostly sideways over the long-term, with short spells of uptrends and downtrends. Currently, the share price is sitting at a confluence of technical support levels.
Not only is the price rejecting the previous swing low in May but it is also finding support at the 61.8% Fibonacci retracement level from surge higher between March and October 2020.
The combination of good company news which will add the bottom line and technical levels where the price could turn will now be the key test on the strength of buyers in the market and an attempt to lift the share price to the last swing high of $160 which is a near 50% move up.
Did you know that you can find real-time, actionable trading ideas on thousands of markets from the Trading Central Technical Insight Lookup indicator in the Premium Analytics section of the Admirals Client portal area?
Open an account and use the indicator for yourself to help you master the markets today.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.